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00:00:00
>> $7.5 billion dollars, that's what Microsoft thinks coding website GitHub is worth. The popular platform is used by software developers at both small startups and tech giants to manage computer source code. The deal could give Microsoft a big edge against Amazon Web Services, the market leader in the cloud business.
00:00:23
Reuters, Rob Seren says, it's part of a larger strategy.>> Microsoft, since Satya Nadella took over, what they're doing is they're trying to get more money from selling services, instead of just software. Instead of saying, here's the software, we control it, you're gonna pay us for it, they're saying, develop your own software, we'll help you do that, we'll help services for it, we'll provide the backend, and we'll sell that to you.
00:00:44
And this fits in with the new strategy of Microsoft in that way.>> The deal, which is Microsoft's largest since its $26 billion acquisition of LinkedIn two years ago, is a big bet on its fast growing cloud business. But the company's had a mixed record in deal making.
00:01:03
>> So under Satya Nadella, they've done a few good deals. LinkedIn seems to be working out reasonably well. They've done an odd deal. They bought Minecraft, the game. But in the past, especially under Ballmer, they had some real bad deals like Nokia, for instance, and aQuantive. Those were deals that just basically all the money was basically vaporized.
00:01:25
>> And those deals are a big worry for GitHub users who don't want Microsoft to botch this one.